In just a few weeks, Arizona residents will have to pay sales tax when shopping at Amazon.com. Beginning February 1, 2013, product sales will be subject to the state’s 6.6% tax. Digital sales will be subject to tax as of July 1, 2013.
The state of Arizona presented the online retailer with a bill for roughly $53 million in uncollected sales taxes for the period March 2006 – December 2010. Amazon owns four fulfillment centers in the Phoenix area, where it employs some 3,000 people. Such a strong physical presence in the state makes it difficult for the company to claim that it does not have nexus in Arizona.
In October of 2012, Amazon revealed that it settled with the state, making an “immaterial payment” for an undisclosed amount. The company also announced that it would begin collecting Arizona sales tax in February 2013, thereby ending the dispute.
Amazon.com will begin collecting sales tax in New Jersey on July 1, 2013. It is currently slated to start collecting sales tax in Virginia on September 1, 2013, and in Tennessee, Nevada, and Indiana in 2014.
Are you prepared for online sales tax? Find out here.